By Atoyebi Nike
The Nigerian naira opened September on a stronger note in the parallel market, trading below the ₦1,550/$ mark, as foreign exchange inflows increased through diaspora remittances and portfolio investments.
The local currency had closed August on a bullish trend at ₦1,531.57/$ in the Nigerian Foreign Exchange Market. According to the Central Bank of Nigeria (CBN), external reserves also rose by $1.72 billion to $41.3 billion, giving the apex bank added capacity to defend the naira.
CBN Governor Yemi Cardoso disclosed that diaspora remittances surged by 200% to $600 million over the past two months, strengthening liquidity in the forex market. He added that improved remittance channels have reduced the need for Nigerians abroad to use alternative transfer routes.
“Boosting diaspora flows will help Nigeria reduce dependence on oil revenue and diversify forex sources,” Cardoso said.
Foreign portfolio investments also increased, rising from $1.5 billion in June to $1.7 billion in July, reflecting renewed investor confidence under carry trade conditions and relative global market stability. Analysts at PwC had earlier forecast that the naira would remain broadly stable in 2025, supported by ongoing CBN reforms and increased portfolio inflows.
Experts note that the black-market appreciation reflects reduced speculative pressure and improved confidence among traders. They predict the naira will remain stable in the official market this week, though rising demand and global dollar strength could slow further gains.
Meanwhile, the US dollar index slipped on Monday after four consecutive losses, as investors awaited US labor market data that could shape the Federal Reserve’s interest rate decision later this month. Markets are currently pricing in an 88% chance of a Fed rate cut, with speculation ranging between 25 and 50 basis points.
The greenback faces additional pressure following a US court ruling declaring former President Donald Trump’s broad tariffs unlawful, alongside concerns over the Fed’s independence amid growing political interference.
